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[[underlined]] Investment Policy Committee Report [[/underlined]]

Mr. Burden, Chairman of the Committee, asked Mr. Hohenlohe to outline the Committee's report, which follows. There was discussion about the high commitment of the endowment to equities (approximately 86%) in view of the current high returns which can be achieved from short-term cash equivalent investments. Mr. Hohenlohe explained that a significant amount of the Institution's current operating funds were invested in high-yielding short-term investments, and that the Institution was therefore now benefitting from this form of investment. The Endowment Funds, however, (totaling $82 million as of December 1, 1980) do not require the same degree of liquidity, and the judgment of the Institution's investment managers has been that at the present time equities can be expected to provide greater total investment return (market appreciation as well as yield) than short-term investments. This question of the ratio of equities to fixed-income securities will be reviewed further at the next meeting of the Committee. Mr. Webb commended Mr. Burden on the dedicated work of the Committee in its periodic meetings with the investment managers and commented on the extensive examination which the Committee members make of the endowment funds.

With the approval of the board, the Chancellor appointed Regent Emeritus Thomas J. Watson, Jr., to serve on the Investment Policy Committee. The membership of the Committee as of January 26, 1981 is as follows:

William A. M. Burden, Chairman
James E. Webb, Regent
Carlisle H. Humelsine, Regent
John Paul Austin, Regent
Thomas J. Watson, Jr., Regent Emeritus
S. Dillon Ripley, Secretary
Christian C. Hohenlohe, Treasurer
Harold Linder - Consultant firm
William R. Salomon - Salomon Bros.
Donald Moriarty - William Burden & Co.
Charles H. Mott - John Bristol Co.
T. Ames Wheeler - former Treasurer

The report of the Committee follows.

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